China has unveiled plans to unite three of its state-owned bad debt asset managers with its primary sovereign wealth fund, the China Investment Corp.
What Happened: China’s official Xinhua news agency, cited anonymous sources in saying that China Cinda Asset Management Co Ltd (OTC:CCGDF), China Orient Asset Management and China Great Wall Asset Management are set to come under the control of the China Investment Corp. This strategic move is part of Beijing’s institutional reform agenda, according to a CNBC report on Sunday.
The merger aims to boost the inherent stability of China’s capital markets and restore investor confidence. The news comes in the wake of a recent announcement by China’s securities regulator, stating that the lending of restricted shares would be suspended from Monday.
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The decision to unite the asset managers follows a significant drop in the stock market, largely driven by escalating financial risks stemming from a debt crisis in China’s real estate sector. Last week, the central bank made the ...
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